The FDCPA and your rights as a Federal Student loan Borrower

The government is known to hire collection agencies to collect defaulted student loans.  It is not simple attending to a defaulted federal student loan since different factors will alter the outcome.  Since government student loans are different from other types of debt it is often misunderstood, and a collector may misrepresent a solution by twist their language around.  Every borrower should be aware of their rights, and the factors that play a role in their own outcome.  Doing the research and understanding the whole picture will make it simpler for some one in this situation.

Issues with Student loan collection agencies may include:

-Misinterpretation and a lack of clarity when discussing the nature of these remedies.
-The complex details of these student loan programs cause confusion about the collection agencies role when collecting on a debt.
-When establishing a payment program the agency has the responsibility for determining the size of the payment amount. In addition, the agencies help recommend borrowers to wage garnishments and tax refund intercepts.
-Government oversight maybe common, considering the high volume of student loan inventory these collection agencies must service.
-Some of Department of Ed’s customer service phone numbers are contracted agencies them selves.

YOUR HONEST DEBT COLLECTION RIGHTS

A collection agency should never harass a borrower.  A Federal honest debt collection practices law and similar state laws exist to protect the consumer’s privacy and rights.  In some situations your state law maybe more powerful than the federal.  A borrower should be aware of their rights when dealing with collection agencies.  A rarely discussed right in the federal debt law is your right to request that a collection agency stop contact at certain locations (such as work places).  Once the Stop communication letter is sent the agency will honor their request.
Additional rights in the federal honest debt law include:

1. Protection of Privacy

-Agencies are prohibited from disclosing the debt when communicating with 3rd parties. Third parties include non-immediate family members, coworkers, neighbors, etc.
-In most cases a collector should only call between 8:00 a.m. and before 9:00 p.m. No communication is allowed if the collector knows you are represented by an attorney. The agency must communicate with the attorney.
-Once a request is made, no communication is allowed at your place of employment.

2. Abusive language & Harassment is not acceptable.

It is flat out illegal for debt collectors to abuse or harass a borrower. Some examples include collectors that:

-Use obscene or insulting language,
-Refuse to tell their identity,
-Threaten violence,
-Call over and over again on the same day with out your permission.
-Making fake threats to investigate you.

3. Misleading or Fake Representation is flat out incorrect

A collector should only mention consequences that can legally be made a reality.  It is always suggested that a borrower listens carefully for the collector’s choice of words.  It is also suggested that a borrower takes careful notes and talks to the same reps.

For example, collectors may not make fake representations by threatening to take any action that cannot legally be taken (e.g. Take your house, Levi your savings account, taking your kid away, sending you to jail, seize your properties).

Although a collector may choose to misrepresent them selves or say misleading things, if the borrower had a full understanding of their options this would not be a problem.  It is ultimately up to the borrower to expand their knowledge so they will be able to make a educated choice.  With the internet going into full bloom information is nearly limitless.  Once again it’ll be up to the person to skim through this world wide web and pick and choose carefully.